Garnishment = confusing, help me clarify!!

[ELS212]

@WhatMoney - I don't know why I couldn't figure that all out before, I think my brain is just fried from oversearching stuff I don't know anything about. I found some new information and it sounds like that you only need a fifa to garnish in georgia if the bank account or employer is in a different county, even then I'm not sure. Either way it doesn't matter anymore! My bank account is mostly empty and my next paycheck will go to a walmart moneycard. I think I'll be safe until January. Thanks so much for your help!

[WhatMoney]

HHM, I am truly confused because it looks like in Georgia they do need a FiFa before they can garnish wages, not just the regular case judgment. What I'm confused about it how much time is required to pass between the FiFa being granted and the ability to garnish, because from what I'm reading it appears that they have to wait at least 30 days and no later than 45 days from the date of the FiFa to garnishment. Keeping in mind that I could be totally mistaken - it seems like it's a little bit harder in Georgia to do this than some states....

I still can't figure out why they haven't gone for the FiFa on my case, or why they haven't notified me of the judgment. It's really strange. Summary judgment was granted 10/7/10 and I have not heard a peep from anyone about this judgment or anything else. Last I got was that they filed a motion for Summary judgment. Every other case Hanna/Cap1 that I could find in my area where they got a judgment, they filed for the FiFa immediately afterward, like 2-3 days.

You are still confused. A FiFa is used for liens on personal property in Ga. A garnishment is used to grab your money, from either wages or bank accounts. There is no FiFa issued for a money garnishment. Bottom line - if your wages are going to be garnished you may get a warning - so you can defend yourself in a court hearing and ask for a lower garnishment amount. It may not come in time to avoid the first garnishment. But there's really not much you can do to avoid a wage garnishment, short of quitting your job. (A "strategy" used by a few here believe it or not.)

I assume you now understand any bank account garnishment order and levy will come with no warning.

If you want to see what your judgment attorney has been up to in your case, just keep watching your case records at the courthouse or online if your county has online case access.

Lien on Debtor's Property

If the debtor refuses to pay the judgment, the creditor may place a lien on the debtor's property, giving the creditor the right to sell the debtor's property to collect the money award. The clerk of the court, when asked by the creditor, can place a lien on the debtor's property. A small fee is charged to place the lien on property.

The court will issue a fieri facias (fifa), which is proof of your judgment. The fifa places a lien against the losing party and any property he or she owns. You may have the fifa recorded in any county in Georgia. If you need to record the fifa outside the State of Georgia, you should contact an attorney for assistance.

You may also levy against real and personal property through the sheriff's office. The sheriff will require the fifa to levy against any personal property. You should also contact the sheriff's office to find out the cost and to make an appointment.

[ELS212]

To the original posters question.

There is a difference between what the creditors needs to do to get the garnishment, and what the debtor will receive notice of.

I am not aware of any state (those that allow garnishment) that require a creditor to notify the debtor of an impending garnishment. So from the debtor's perspective, a garnishment will always be a surprise. However, "behind the scenes" for a creditor to actually get a garnishment, in most states, the creditor must file some paperwork with the court and get the judges signature before the garnishment is actually served. The debtor is not normally notified about these proceedings. Actually, to call them proceedings is an over-statement...all that happens is the creditor files a handful of paperwork, the judge's clerks review it (maybe) and ink stamp the judges signature.

From the debtors perspective, all you will see is that the creditors got a judgment, and then poof, some money is taken from a bank account of from a paycheck several weeks later.

HHM, I am truly confused because it looks like in Georgia they do need a FiFa before they can garnish wages, not just the regular case judgment. What I'm confused about it how much time is required to pass between the FiFa being granted and the ability to garnish, because from what I'm reading it appears that they have to wait at least 30 days and no later than 45 days from the date of the FiFa to garnishment. Keeping in mind that I could be totally mistaken - it seems like it's a little bit harder in Georgia to do this than some states....

I still can't figure out why they haven't gone for the FiFa on my case, or why they haven't notified me of the judgment. It's really strange. Summary judgment was granted 10/7/10 and I have not heard a peep from anyone about this judgment or anything else. Last I got was that they filed a motion for Summary judgment. Every other case Hanna/Cap1 that I could find in my area where they got a judgment, they filed for the FiFa immediately afterward, like 2-3 days.

[jacko]

Yep..You are correct. To minimize the garnishment, you can always reset the tax withholding exemption to zero for a larger tax refund, which is legal.

Why is the IRS more generous with the exemptions?

Jacko, Forgive me for my sins, but you posted the IRS wage garnishment exemptions for money owed on taxes. These are not the same as non-tax garnishment laws. Please provide us with more information as to how the tax garnishment exemptions you posted are related to the federal wage garnishment laws for non-tax debts. Please.

Thanks!

[HHM]

To the original posters question.

There is a difference between what the creditors needs to do to get the garnishment, and what the debtor will receive notice of.

I am not aware of any state (those that allow garnishment) that require a creditor to notify the debtor of an impending garnishment. So from the debtor's perspective, a garnishment will always be a surprise. However, "behind the scenes" for a creditor to actually get a garnishment, in most states, the creditor must file some paperwork with the court and get the judges signature before the garnishment is actually served. The debtor is not normally notified about these proceedings. Actually, to call them proceedings is an over-statement...all that happens is the creditor files a handful of paperwork, the judge's clerks review it (maybe) and ink stamp the judges signature.

From the debtors perspective, all you will see is that the creditors got a judgment, and then poof, some money is taken from a bank account of from a paycheck several weeks later.

[treehugger1]

Jacko, Forgive me for my sins, but you posted the IRS wage garnishment exemptions for money owed on taxes. These are not the same as non-tax garnishment laws. Please provide us with more information as to how the tax garnishment exemptions you posted are related to the federal wage garnishment laws for non-tax debts. Please.

Thanks!

[jacko]

Here is the IRS exemption table.

http://www.irs.gov/pub/irs-pdf/p1494.pdf

Her family size is 4, so no garnishment due to income amount. She needs to contact payroll debt to exercise her family exemption from garnishment.

I think he wants a pointer to the "law". I can't find what you are talking about either.

His NET take-home pay after all deductions for family allowances is about $350/week he said. Georgia follows Federal law for wage garnishments, so anything above $217.50/week is subject to garnishment. He would be subject to wage garnishment according to the Federal rules:

http://www.dol.gov/whd/regs/compliance/whdfs30.pdf

And the Georgia civil rules for garnishment are here:

http://www.georgiacourts.org/council...rnishments.pdf

There is no mention of additional deductions in any of the above laws. I think you assumed his pay was gross, not net, and were figuring in the IRS tax deductions for dependents - but his take-home pay is what you get after all tax deductions, in which case he still has some wages subject to garnishment.

[chicagoannie]

oops, I meant 15% of my gross income went to the garnishment!

[chicagoannie]

I agree with the others - drain that account immediately and make other arrangements for your finances, especially if you have direct deposit. I have a friend filed Ch 7 and had a creditor (her former divorce attorney) hit her bank account for $10K! She had no warning - went to withdraw $20 and her account was negative $10,200! Even though the creditor was in the wrong (he was a real sneak) her bank account was tied up for over 30 days...her paycheck and child support monies were frozen, checks were bounced and it was a total nightmare for her. Even though she wasn't paying her bills anymore, she still had kids to feed!

In my case I had a judgment creditor garnish my wages - I was making very very little at the time and supporting 4 kids. 25% of my income got gone but I did receive warning in advance, of a sort. My employer emailed me a copy of the wage garnishment order before my check was decreased. I believe the courts do offer relief from wage garnishment but you have to file a motion and prove your low income and necessary expenses. I was a fool and did not try to do this...and ended up financially farther and farther in the hole. Interestingly, that creditor is now a part of my Ch 7 and will not receive a penny more from me.

[ELS212]

I think he wants a pointer to the "law". I can't find what you are talking about either.


There is no mention of additional deductions in any of the above laws. I think you assumed his pay was gross, not net, and were figuring in the IRS tax deductions for dependents - but his take-home pay is what you get after all tax deductions, in which case he still has some wages subject to garnishment.

Right, except that it's "she." No offense taken. I appreciate your help & willingness to answer my questions so much!!

[WhatMoney]

Because its the law. They can only garnish up to 25% once the exemptions are factored in. The first $290 in weekly earnings for a single person is exempt from garnishment. You need to inform your employer that your family size is 4 and that you will exercise your family exemption from garnishment.

I think he wants a pointer to the "law". I can't find what you are talking about either.

His NET take-home pay after all deductions for family allowances is about $350/week he said. Georgia follows Federal law for wage garnishments, so anything above $217.50/week is subject to garnishment. He would be subject to wage garnishment according to the Federal rules:

http://www.dol.gov/whd/regs/compliance/whdfs30.pdf

And the Georgia civil rules for garnishment are here:

http://www.georgiacourts.org/council...rnishments.pdf

There is no mention of additional deductions in any of the above laws. I think you assumed his pay was gross, not net, and were figuring in the IRS tax deductions for dependents - but his take-home pay is what you get after all tax deductions, in which case he still has some wages subject to garnishment.

[jacko]

Because its the law. They can only garnish up to 25% once the exemptions are factored in. The first $290 in weekly earnings for a single person is exempt from garnishment. You need to inform your employer that your family size is 4 and that you will exercise your family exemption from garnishment.

Jacko, how do you know this?? I can't find anything about it. From what I have read, basically in GA (for my purposes anyway) the limit is 25% that they can take, which is the lesser amount for me (around $90). I am not single though - we are married, but I am the head of household/sole income earner at the moment.

[ELS212]

Thanks Clevelandmom!! I am about to do that actually. I appreciate your help!

[clevelandmom]

Els,

Get your money out of the bank as soon as you can. Stop direct deposits, have them send live checks instead. If you can, have your spouse(?) open an account in their name only. If they are going to garnish you through your employer, your employer needs to tell you first. I do believe you have the right to request a hearing to explain to the Judge why them taking 25% of your money will leave you destitute. If you have questions that you're not getting answers to, call a legal clinic that specializes in BK near you and ask them. In the meantime, protect every dime you have. Those blood suckers don't care about your circumstances. Best of luck!

[frogger]

I think you are reading about wage garnishments with all the notices, etc. Usually there is no warning or notice if they are going to levy your bank account. You find out when your checks bounce or debit card doesn't work. The bank sends you a notice your account is frozen about 5 days later. There is only one judgment. Bank account garnishments can be done any time by the judgment holder, and they would never give you a warning or you would withdrawal all your money before the levy.

Correct. They're going to sneak up on you before you can move the money. If/when your checking account gets garnished, checks bounce and debit cards are frozen. It can be a very bad situation for you.